own property for 6 months to get cash out 30 yr mortgage?

[Kevin McDonald]

Hello,

Newbie investor just purchased my second rental home.What I am doing is buying bank owned homes that need work (cash only sales). I use a HELOC to purchase the property and do all the repairs.I am fixing them up (myself doing the majority of the work subbing out big tasks).When I am done I get a cash out 30 year mortgage for what I have into the investment and pay back what I used on my HELOC. This is how I did the first house which needed extensive renovations and took me a year to complete.

The second rental house I just purchased using my HELOC needed minimal work and I was able to do all the repairs and I have a signed lease and the tenant is moving in 30 days after I purchased the house. I called my lender and he said fannie mae rules say I must have the property titled in my name for 6 months before I can get a cash out 30 year mortgage on it.

I was curious if others have ran into this problem and was curious if this is a true statement.

Thanks

Kevin

[Upen Patel]

@Kevin McDonald If you bought your property with cash then you can get Delayed Financing. The financing will be based on the purchase price/appraisal. If you want to get a new appraisal then you will have to wait for 6 months.

Good luck.

Upen Patel
Mortgage Banker